Liechtenstein, Uruguay Initial DTA

01.04.2010

It has recently emerged that chief negotiators from Liechtenstein and Uruguay have initialled a bilateral double taxation agreement (DTA) between the two countries, thus marking an end to the negotiations.

The text of the agreement follows the Organization for Economic Cooperation and Development’s (OECD) Model Convention, and provides for information exchange upon request.

The agreement, due to be signed shortly, will enter into force upon completion of the respective domestic ratification procedures, and will apply for tax years following its entry into force.

According to the Liechtenstein government, conclusion of the agreement reflects the country’s determination to continue on its path towards international cooperation in tax matters, and marks a strengthening of relations with the Republic of Uruguay.

On March 12, 2009, the Liechtenstein government agreed to adopt the OECD’s global standards in transparency and information exchange in tax matters. In the past few months, Liechtenstein has signed 15 such agreements.